22 Mar 2024 17:15

Investment activity in Russia at record levels, economy is in investment phase of growth - Nabiullina

MOSCOW. March 22 (Interfax) - The Russian economy is in the investment phase of growth, with investment activity at a record level and imports of investment goods are growing, Central Bank of Russia (CBR) Governor Elvira Nabiullina said at a briefing following a meeting of the regulator's board, at which it held the key rate at 16%.

"After a slight deceleration at the end of 2023, according to our estimates, the growth of economic activity has sped up again, primarily in household consumption. Growth in retail is a sign of elevated consumer demand. Consumer sentiment is close to record highs. Households' propensity to make large purchases has been increasing since December. We never observed such trends during the previous periods of considerable monetary policy tightening," she said.

"Investment activity has hit a record high. Although we have not yet received quarterly data, this is evident from indirect indicators. The output of investment goods has reached historically high levels. The import of investment goods has been expanding. Finally, our regional branches report a higher percentage of companies that have increased their production targets. The economy is in the investment phase of growth, which is one of the manifestations of the structural transformation," Nabiullina said.

"All this supports high business activity. The Business Climate Index rose to its 12-year maximum. Such a significant increase is associated with the fact that the economy is using almost all production capacities and labour resources," the CBR chief said.